International Paper's CEO, John Faraci, long fascinated by the outdoors, has refocused the paper and packaging titan with superb results. A spotlight on how he's done this, and his outlook.

John Faraci once looked out the window of his Memphis office to see a hawk snatch a squirrel from a tree. It happened in a shady woodland grove that was no more than a freshly planted garden when Faraci's company, International Paper, put down stakes in the city 25 years ago. The now-sturdy trees and their occasional inhabitants, surrounded by the three towers that house the company's headquarters, serve as "a reminder that we are in the forestry business," says Faraci.